Luzerne County non-union workers may be required to pay more toward health insurance

Nearly two decades ago, prior Luzerne County commissioners required non-union workers to start paying 10% toward their health insurance coverage.

The move was intended to help control costs and set a benchmark to gradually shift union workers to the same percentage through collective bargaining agreements.

But now, through rounds of contracts, the unions are surpassing non-union employees with contributions of 12% or 15%.

County Manager Romilda Crocamo said the issue of non-union health insurance payments will be addressed in the proposed no-tax-hike 2024 budget she is set to present to county council Tuesday night, and details will be released at that time.

“Employee contributions to health care are a necessary step toward ensuring the sustainability and effectiveness of health care plans,” Crocamo said. “Luzerne County has to strike a balance that allows for access to quality health care and managing costs while making sure the overall compensation package remains competitive to recruit and retain workers.”

The county is self-insured, which means it pays its own medical bills but relies on outside insurers to provide a network of doctors and treatment at negotiated rates, officials said. Special “stop-loss” insurance covers the cost of individual claims over a set amount if employees must undergo expensive treatment.

The county budgeted a $20.85 million expense for health care in 2023 and $9.25 million in reimbursements to help offset costs on the revenue side.

Introduction of the proposed 2024 budget ordinance is scheduled during Tuesday’s 6 p.m. voting meeting at the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s online meetings link at luzernecounty.org.

Contribution amounts

For the county’s Highmark HMO coverage, employees are paying the following amounts every two weeks at 10%, 12% and 15%, according to the human resources department:

• Single: $35.53/$42.63/$53.29

• Employee/spouse: $99.47/$119.37/$149.21

• Employee/child: $71.05/$85.26/$106.58

• Employee/children: $88.82/$106.58/$133.22

• Family: $110.13/$132.16/$165.20

This plan has an in-network deductible of $500 for individuals and $1,000 for families, according to county records.

Other rates apply for the county’s Highmark PPO option.

Union payments

The county has 10 collective bargaining agreements and three memorandums of understanding that are equivalent to union contracts.

The union conversion to 12% contributions was completed in 2022, when unionized prison workers hired before 2020 switched from 10% to 12% contributions.

Those now paying 15%, according to a review of union contracts:

• AFSCME Residual Union workers hired since 2014

• AFSCME Court-Related Union workers hired on or after May 1, 2013

• Teamster Local 401-represented employees in Children and Youth, Mental Health/Developmental Services and the Area Agency on Aging hired after March 26, 2018

• LIUNA Local 1310-represented prison workers hired since 2020

• Court-Appointed Professional workers (probation/domestic relations officers) hired since 2020

• Assistant district attorneys/public defenders represented by Teamsters

• AFSCME Court-Appointed Support Workers hired since 2016

• First-level supervisory Children and Youth, Mental Health and the Aging Agency workers represented by Teamsters who were hired since 2017

Also, county detectives will increase to 15% contributions next year.

Benefit proposal

During Tuesday’s work session, which follows the voting meeting, the administration has scheduled a presentation on a proposal to retain ETA Insurance Services to provide consultation/brokerage services for all county medical insurance and benefits policies, the agenda said.

According to the agenda attachment:

In prior years, the county acquired its insurance coverage on a “policy-by-policy basis” through consultants/brokers that offered the best coverage and rates for each policy following a public procurement process.

“By approving a single consultant/broker, the county will be able to develop relationship(s) with a company who would handle all the county’s medical programs for its employees,” it said.

The county sought proposals for consultation/brokerage services last month, and all screening committee members ranked ETA as their first choice, with the recommendation based on the firm’s price and overall ability to provide services, it said.

Four people served on the screening committee: county Administrative Services Division Head Jennifer Pecora, county Human Resources Director Jessica Beishline, county Controller Walter Griffith and Deputy Controller Thomas Sokola.

ETA would bill the county $6.75 per employee each month to manage day-to-day health care programs, compile bi-monthly reports, work with union groups and evaluate consortiums to “drive down costs,” it said.

In addition, ETA would receive a $60,000 retainer ($5,000 per month) to develop cost-saving initiatives, it said, indicating the retainer expense will be covered through health care savings.

Approximately 1,100 employees and 37 retirees are receiving county insurance coverage, according to the county’s request for a consultant/broker. This figure includes an unspecified number of prior employees paying for coverage through COBRA.